DATADOT TECHNOLOGY LIMITED Annual Report 2022
Financial Year Ended 30 June 2022
ABN 54 091 908 726
Annual Report 2022
Contents | Page |
Chairman's Review | 2 |
Financial Report | |
Directors' Report | 3 |
Remuneration report (audited) | 13 |
Auditor's independence declaration | 20 |
Consolidated financial statements | |
Consolidated statement of profitor loss | 22 |
Consolidated statement of comprehensive income | 23 |
Consolidated statement offinancial position | 24 |
Consolidated statement of changesin equity | 25 |
Consolidated statement ofcash flows | 26 |
Notes to the financial statements | 27 |
Directors' declaration | 48 |
Independent auditor's report | 49 |
Shareholder Information | 53 |
Corporate Information | 55 |
ABN : 54 091 908 726
8 Ethel Ave
Brookvale, NSW, 2100
P : +61 2 8977 4900
www.datadotdna.com
DataDot Technology Limited | Annual Report 2022 | Page 1 |
Chairman's Review
Dear Shareholders
I am pleased to present the Company's 2022 Annual Report. I am also pleased to be able to report that despite the disruptions presented in the first half of the year from the on-going periodic lock downs and logistical challenges of the Covid pandemic, and the reduction in royalty revenue in the fourth quarter due to the Ukraine conflict, the company was able to maintain its profit trajectory over the year.
Delivering a profit result in the face of these unexpected external challenges is validation of the Board and Executive's focus on cost reduction and the introduction of more efficient production and administrative processes since 2019. However, as highlighted in our Financial Report released in August, current world events and their impact on the global economic outlook have created a significant level of uncertainty, particularly in our key automotive markets going forward.
The key results for the year include:
- A decrease of 8.6% in total revenue (including an 11.2% decrease in royalty revenue);
- A 7.7 % increase in gross margin on product sales;
- A net 14.2% increase in operating expenses; and
- An overall Net Profit of $829k excluding the Deferred Tax Benefit of $5,701,507 in relation to unused tax losses required to be brought to account (* see below).
2020 | 2021 | 2022 | |
Revenue | 3,774,569 | 3,896,113 | 3,561,177 |
EBITDA | 309,385 | 1,494,733 | 1,045,785 |
Net Profit / (Loss) after tax * | 29,203 | 1,234,982 | 829,163 * |
As a result of the profit earned during the FY 2022 year the net assets of the group have increased from $3,173,457 at June 2021 to $3,977,724 at June 2022 (excluding the Deferred Tax Asset) with cash and cash equivalents available to the group of $3,179,549. Outside of standard creditor's trading terms, the Company remains debt free. This strong financial base provides us with sufficient working capital to pursue our plans for revenue growth during this current period of world economic uncertainty.
These plans include a continued focus on our efforts for the balance of FY 2023 to grow PropertyVAULT revenue streams via its suite of products and services, and securing potential new clients in the European automotive sector via our new partnership agreement with DataDot South Africa.
The Board is also cognisant of its responsibility to effectively manage the Company's cash reserve to enhance shareholder value via capital management activities. Given the priority of revenue growth for the medium term, and in view of the uncertainties in respect to the overall world economic outlook, the Board has resolved that for the remainder of FY2023 it will continue its focus on investment in new revenue generating activities while maintaining the long-term financial stability of the group.
Notwithstanding the current external challenges, your directors are committed to maintaining the significant progress that has been made towards delivering our vision of creating a sustainable and profitable business that will provide a solid financial basis to support future growth.
Ray Carroll
Chairman
15 October 2022
DataDot Technology Limited | Annual Report 2022 | Page 2 |
Directors' Report | for the year ended 30 June 2022 |
Directors
The Directors present their report together with the financial statements of the consolidated entity comprising DataDot Technology Limited and the entities it controlled (the "consolidated entity") for the financial year ended 30 June 2022.
The following persons were directors of DataDot during the financial year and up to the date of this report, unless otherwise stated:
- Ray Carroll
- Brad Kellas
- David Lloyd
Principal activities
The principal activities of DataDot during the year were:
- to manufacture and distribute asset identification and digital protection solutions that include:
- DataDotDNA® - polymer and metallic microdots containing data that is unique to the assets to which the microdots are attached;
- Asset Registers - databases that record asset identification data and are accessible by law enforcement agencies and insurance investigators, and
- DataDot-VAULTbundled asset protection products and services.
- to manufacture and distribute high security DataTraceID® authentication solutions; and
- To develop and distribute customised solutions combining DataDotDNA®, DataTraceID®, asset registration and/or other technologies.
There has been no significant change in the nature of the Company's activities during the year.
Dividends
The Directors recommend that no dividend be paid. No dividends have been declared or paid during the period.
Review of operations
The Directors are pleased to report that for the financial year ending 30 June 2022 the Group earned a statutory net Profit After Tax of $6,521,197. This figure includes an amount of $5,701,507 of deferred tax assets in relation to unused tax losses of the Australian entities which are required to be brought to account this year. The underlying trading result for the Group for the financial year ending 30 June 2022 is a net Profit Before Tax of $829,163.
While the current year profit is down from the previous year of $1,234,982, it is still a significant improvement compared to the $29,203 net Profit in FY 2020 and the loss of $2.3m in 2019. Further, the net profit result in FY 2021 included payments under the Federal Governments various Covid-19 business support schemes. When the benefit of these payments is removed from the FY 2021 net profit result, a like-for-like comparison sees the FY 2022 underlying net profit result of $829,163 compared to the FY 2021 underlying net profit result of $1,134,482.
DataDot Technology Limited | Annual Report 2022 | Page 3 |
Directors' Report (continued) | for the year ended 30 June 2022 |
The following charts summarise the major trends in the financial performance of the Group over the past 7 years and the impact on the group's financial performance in the years subsequent to the change of the Board in May 2019:
DDT 7 Year Financial Trends - Revenue & Expenses
$000's
8,000
6,000
4,000
2,000
-
(2,000)
(4,000)
(6,000)
(8,000)
(10,000)
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | ||||||||
Years 2016 - 2022
Royalties, Licence and Service Fees
Sale of Goods
Total Expenses
$000's
DDT 7 Year Trends - Profit / (Loss) | ||||||
1,500 | ||||||
1,000 | ||||||
500 | ||||||
- | ||||||
(500) | ||||||
(1,000) | ||||||
(1,500) | ||||||
(2,000) | ||||||
(2,500) | ||||||
(3,000) | ||||||
(3,500) | ||||||
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
DataDot Technology Limited | Annual Report 2022 | Page 4 |
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DataDot Technology Limited published this content on 21 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 October 2022 04:49:03 UTC.
